Economists College of Panama
Re: Tax Reforms
My Dear friend Raul:
Thank you very much for your request about what we the members of the college think about the bill of tax reforms proposed by the present government to the House of deputies. Here I submit my opinion, which I offer as a contribution to discussion of the topic with the propensity to be modified when faced with better arguments from colleagues at school.Article I sent you which is only a contribution to discussion on reform, I am entrusting my opinion on the systematic position which I believe should be the college´s position on the topic:
1. I think we should request that both projects that includes tax reforms must be discussed together:a. The preliminary 21 "which establishes measures of fair taxation for the middle class." presented by Deputy Jose Isabel Blandon currently chairman of the Budget Committee of the Assembly.b. The project 33 "which are modified by provisions of the tax code and take other measures." Submitted by the Minister Dimitri Papadimitriu on behalf of the Cabinet Council President Richard Martinelli.
2. Agreed with eliminating the CAIR for natural persons.
3. Agreed with 20% set in the roof of the Income Tax (ISR) for individuals.
4. Agreed with that school expenses are deductible from income tax up to B / 2,000.00.
5. Also according to the income tax deduction of social security payments for up to 10% of annual gross income and are deductible currently only private insurance.
6. Also according to an adjustment in the property tax and capital gains on the sale of real estate to 5% of sale price or the cadastral value, whichever is of greater benefit to the state.
7. Agreed that steps be taken to avoid splitting of neighboring lots to avoid paying property tax.
8. According to establish a fixed 20-year exemption of all improvements to the amount of B/80, 000.00.
9. Propose to develop a lant titling plan for free of Panamanians with possessory rights as proposed in the campaign.
10. Under the tax is raised from 10% to 25% in the gambling rooms and 10% to 18% for full casinos.
11. According to increase the cigarette tax to 50%. and include alcohol beverages too.
12. According to increase the ceiling by notice B/40 business operations, to B/60, 000 and extends to the Colon Free Zone.
13. Contrary to spread payment of ITBMS fixed telephony business because it penalizes all companies including small and medium businesses
14. Contrary ITBMS include commissions for banking, financial services and real estate tax because it is a final applicant or consumer of the service, the user, and therefore cooperates with the economic slowdown.
15. Contrary to ITBMS include commissions paid by insurance and reinsurance to third persons because it goes against the final purchaser of the service which helps in raising the weight tributary to the middle class.
16. Contrary ITBMS include legal services to be provided to persons resident outside the country and which changes the historical concept of territoriality and again will fall on the middle class.
17. Contrary ITBMS include legal services that lend themselves to international trade ships registered in the merchant marine because it is recessionary in times of global crisis.
As always I appreciate your interest in making us partakers of the discussion and willing to give the college any further collaboration.
Best regards and congratulations for your good job in our college.
Mgter Philip A. Argote S.